Tuesday, October 14, 2008

Big French Banks Claim No Need of Capital

France's biggest lenders--BNP Paribas, Crédit Agricole, and SocGen--say they don't need any infusion of new equity from the government. In the U.S., some big banks did not want to participate in the Treasury plan, but Paulson insisted on the grounds that if some banks held out, participating banks would be stigmatized as less sound, precipitating runs on their funds. Will this logic obtain in France? Or were Paulson's fears misplaced?e

1 comment:

kirkmc said...

I'm reassured - I have most of my accounts with the Crédit Agricole. The CEO even published a letter on the bank's web site (at least the site that customers use to access their account information) the other day saying that the bank was sound.